Although the fashion industry developed first in Europe and America, as of 2017, it is an international and highly globalized industry, with clothing often designed in one country, manufactured in another, and sold worldwide. For example, an American fashion company might source fabric in China and have the clothes manufactured in Vietnam, finished in Italy, and shipped to a warehouse in the United States for distribution to retail outlets internationally. The fashion industry has long been one of the largest employers in the United States,[30] and it remains so in the 21st century. However, U.S. employment declined considerably as production increasingly moved overseas, especially to China. Because data on the fashion industry typically are reported for national economies and expressed in terms of the industry's many separate sectors, aggregate figures for world production of textiles and clothing are difficult to obtain. However, by any measure, the clothing industry accounts for a significant share of world economic output.[31] The fashion industry consists of four levels:

Internet technology such as online retailers and social media platforms have given way for trends to be identified, marketed and sold immediately.[36] Styles and trends are easily conveyed online to attract the trendsetters. Posts on Instagram or Facebook can easily increase awareness about new trends in fashion, which subsequently may create high demand for specific items or brands,[37] new "buy now button" technology can link these styles with direct sales.

In the fashion industry, intellectual property is not enforced as it is within the film industry and music industry. Robert Glariston, an intellectual property expert, mentioned in a fashion seminar held in LA[which?] that "Copyright law regarding clothing is a current hot-button issue in the industry. We often have to draw the line between designers being inspired by a design and those outright stealing it in different places."[69] To take inspiration from others' designs contributes to the fashion industry's ability to establish clothing trends. For the past few years, WGSN has been a dominant source of fashion news and forecasts in encouraging fashion brands worldwide to be inspired by one another. Enticing consumers to buy clothing by establishing new trends is, some have argued, a key component of the industry's success. Intellectual property rules that interfere with this process of trend-making would, in this view, be counter-productive. On the other hand, it is often argued that the blatant theft of new ideas, unique designs, and design details by larger companies is what often contributes to the failure of many smaller or independent design companies.

Although tailors and dressmakers were no doubt responsible for many innovations, and the textile industry certainly led many trends, the history of fashion design is normally understood to date from 1858 when the English-born Charles Frederick Worth opened the first true haute couture house in Paris. These fashion houses have to adhere to standards such as keeping at least twenty employees engaged in making the clothes, showing two collections per year at fashion shows, and presenting a certain number of patterns to costumers.[23] Since then, the idea of the fashion designer as a celebrity in his or her own right has become increasingly dominant.[24]

These levels consist of many separate but interdependent sectors. These sectors are Textile Design and Production, Fashion Design and Manufacturing, Fashion Retailing, Marketing and Merchandising, Fashion Shows, and Media and Marketing. Each sector is devoted to the goal of satisfying consumer demand for apparel under conditions that enable participants in the industry to operate at a profit.[32]

fashion, style, and fad mean the way that up-to-date people do things. fashion is used of any custom (as a way of dressing or behaving) that is widely accepted at any one time or place. It was once the fashion for everyone to wear hats. style may suggest a fashion that is approved of by people with taste. The house was decorated in the latest style. fad is used for something that is very popular and often only for a short time. Beach tennis may be just a fad.